“When Leaders Must Override the Algorithm”

“When Leaders Must Override the Algorithm”

Blog Article

At the Asian Institute of Management, one of Southeast Asia’s top business schools, Joseph Plazo—founder of AI investment firm Plazo Sullivan Roche—offered a message rarely heard in boardrooms today: pause.

His technology powers some of Asia’s most reliable portfolio strategies.

And yet, he stood in front of the next generation of business leaders to say:

“We didn’t automate strategy. We automated speed. That’s not the same.”

???? **From Execution to Ethics: What Leaders Must Still Own**

Plazo is not retreating from AI—he’s refining how it’s led.

“Without strategic intent, execution becomes risk acceleration.”

He recalled a moment in 2020: a bot under his direction flagged a short on gold—hours before the Federal Reserve’s emergency announcement.

“We reversed the trade. The machine was right on data—but wrong on timing.”

???? **Leadership Isn’t Measured in Milliseconds**

Plazo introduced a concept he now teaches internally: **Strategic Friction**.

“Deliberation protects reputation,” he said. “Friction isn’t inefficiency—it’s discipline.”

He then outlined **Conviction Calculus**, a leadership-level framework for decision validation in AI-assisted organizations:

- What does this read more say about our organization’s long-term identity?
- Has senior leadership had a voice before execution?
- Will we own the outcome if it fails?

???? **Why Asia’s AI Acceleration Needs Executive Restraint**

Plazo pointed to Asia’s surging fintech sector—with massive investments in algorithmic trading and automation infrastructure from Singapore, South Korea, and the Philippines.

But he cautioned:

“Governance is lagging behind growth.”

He referenced recent collapses of AI-driven hedge funds in Hong Kong in 2024, where systems failed to interpret macroeconomic risk.

“The code executed flawlessly. The oversight didn’t exist.”

???? **The Future of Machine Strategy Must Be Story-Aware**

Plazo is now advancing what he calls **“narrative-integrated AI”**—systems that integrate geopolitical signals, regulatory context, intent, and human tone into algorithmic output.

“Strategy lives in story, not just numbers,” he said. “AI must learn to read both.”

Following his talk, venture firms from Tokyo and Jakarta began discussions on enterprise-level governance systems for algorithmic infrastructure.

One executive called the talk:

“A boardroom blueprint for AI era decision-making.”

???? **The Real Risk: Perfect Execution Without Reflection**

Plazo closed with a sobering truth:

“The next crash won’t be emotional,” he said. “It will be perfectly logical—executed without human pause, and left unchallenged.”

The message was clear: AI may dominate execution, but humans must lead intention.